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2019 (8) TMI 469 - HC - Income TaxPenalty u/s 271 (1) (c) - multiple year data’ by the Assessee in determining ALP of the international transaction using TNMM whereas the Transfer Pricing Officer (‘TPO’) had adopted a ‘single year data’ - HELD THAT:- The Court notes that after the words “data relating to the financial year” occurring in Rule 10 B (4) of the Rules , there is an insertion made in the Rules with effect from 19th October 2015, which reads “hereafter in this Rule and in Rule 10 (C) (a) referred to as the ‘current year’. While it could be argued that this was a clarificatory amendment, the fact remains that the legislature thought it necessary to clarify that the data that was required to be used had to necessarily relate to the financial year in question and not to multiple year data. The view taken by the ITAT that during the AY in question, the issue was debatable cannot, in the circumstances, said to be an implausible view. The second ground on which penalty was levied related to the claim of standard deduction by the Assessee at 5%. The ITAT noted that even this was a debatable issue and a clarification was finally issued in Finance Bill, 2012, which clarification has been reproduced in paragraph 11 of the impugned order. The Court concurs with above view of the ITAT that this issue is also a debatable one. No substantial question of law arises for consideration.
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